Ark Value manager likes Centex, Lear, Crown Cork & Seal

DavidB. Wilkerson

"We really have a lot of flexibility in the sectors and the types of stocks that we look at," said Rishel, the co-portfolio manager of the Ark Value Equity Fund. "We tend to look at stocks with below-market P/Es and price-to-cash flow and a lot of other valuation metrics. And we also tend to take a longer time horizon... we're willing to wait as the stocks reaccelerate their growth."

Rishel's top pick is Crown Cork and Seal
CCK, +1.07%
The Philadelphia-based maker of food and beverage can products "has gone through some hard times," she admits, but is on a recovery track. "We think they're well positioned in an industry that has consolidated, and they are de-leveraging the balance sheet. They are getting [better] pricing in their industry ... and we think the valuation is extremely attractive at three times free cash flow." The shares fell 12 cents to $11.47 Friday, well off the one-year low of 83 cents set Dec. 3.

Centex
CTX, +0.60%
a home-building services provider in Dallas, is her No. 2 pick. "We think the home building stocks - in particular, Centex - have a cyclical aspect to them, but there's also a secular story there. With supply being tight, as land is becoming more and more scarce across the country, [and] coupled with an upswing in demand with low interest rates and low inflation, consolidation of the major home builders really sets the stage for the companies to outperform going forward. And we still think they're cheap." Shares fell 17 cents to $58.01.

Auto-parts manufacturer Lear Corp.
LEA, +0.49%
headquartered in Southfield, Mich., is the third choice. "This is a company that's situated in a sector that had really been unloved by the market, and the expectations for auto production had been extremely low, and yet they've surprised on the upside. Production numbers keep going up. Demand has surprised everyone, and Lear is a beneficiary of that." It rose 20 cents to $52.37.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.